Often we find that we are getting deeper in debt without the capability of paying the bills we have already accumulated.
You have a good job with a very comfortable salary and made some sound investments with no thoughts of over extending yourself financially but all of a sudden things change.
The investments are now going south, a family member becomes ill, and your job position is not as sound as you had hoped.
You find that there are talks of layoffs and cut backs at your work place.
You find yourself in a position that you never dreamed possible financially.
You need to be very careful and not mismanage how you are using your credit cards.
One of the red flags that should go up for you is that you have charged to the max your credit cards.
You should realize that later you will find yourself in debt with little possibility of paying off what you owe.
One good rule of thumb is to keep your debts at least 40% below your credit limit.
Take a good look at how you are spending your money each month and start to cut back on spending making sure that you pay your monthly credit card bills.
One fatal mistake is to make a home equity loan and spend it on unnecessary expenses.
You do have a right to borrow anytime against your home during your loan period for necessary things.
You should use this as a last resort to help you through a time of financial crisis.
Remember when you lose your job you also lose benefits such as health care.
You may or may not have someone in the family who needs health care insurance but it could be a long period of time before you secure new employment.
You need to make sure that you have put back some money for emergencies or at least are able to rely on the equity in your home.
The economy being in a very poor state and many jobs are at risk it takes much longer to find work that is suitable and pays what you and your family are accustomed to for your standard of living.
You need to be very cautious how you spend your money and make sure that you are saving for the time when you might become unemployed.
You may think it will not happen to you but tomorrow is not certain and many have found themselves unemployed.
One thing to be very concerned over is not to co-sign for someone else's loan.
You are held accountable for that bill and if that person becomes unemployed it could cause you financial difficulty.
When you take all these things into consideration you may find that you are at risk for possible bankruptcy.
In order to prevent going into bankruptcy budget your salary making sure that you are keeping up with your credit card debts.
Do not spend more than you can afford trying to save back some of your salary for emergencies.
You have a good job with a very comfortable salary and made some sound investments with no thoughts of over extending yourself financially but all of a sudden things change.
The investments are now going south, a family member becomes ill, and your job position is not as sound as you had hoped.
You find that there are talks of layoffs and cut backs at your work place.
You find yourself in a position that you never dreamed possible financially.
You need to be very careful and not mismanage how you are using your credit cards.
One of the red flags that should go up for you is that you have charged to the max your credit cards.
You should realize that later you will find yourself in debt with little possibility of paying off what you owe.
One good rule of thumb is to keep your debts at least 40% below your credit limit.
Take a good look at how you are spending your money each month and start to cut back on spending making sure that you pay your monthly credit card bills.
One fatal mistake is to make a home equity loan and spend it on unnecessary expenses.
You do have a right to borrow anytime against your home during your loan period for necessary things.
You should use this as a last resort to help you through a time of financial crisis.
Remember when you lose your job you also lose benefits such as health care.
You may or may not have someone in the family who needs health care insurance but it could be a long period of time before you secure new employment.
You need to make sure that you have put back some money for emergencies or at least are able to rely on the equity in your home.
The economy being in a very poor state and many jobs are at risk it takes much longer to find work that is suitable and pays what you and your family are accustomed to for your standard of living.
You need to be very cautious how you spend your money and make sure that you are saving for the time when you might become unemployed.
You may think it will not happen to you but tomorrow is not certain and many have found themselves unemployed.
One thing to be very concerned over is not to co-sign for someone else's loan.
You are held accountable for that bill and if that person becomes unemployed it could cause you financial difficulty.
When you take all these things into consideration you may find that you are at risk for possible bankruptcy.
In order to prevent going into bankruptcy budget your salary making sure that you are keeping up with your credit card debts.
Do not spend more than you can afford trying to save back some of your salary for emergencies.